LIC Stake Sale: India’s Largest Offer For Sale Hits ₹31,552 Crore
By Business Desk
India’s government successfully sold a 6.5% stake in LIC for ₹31,552 crore, marking the nation’s largest-ever offer for sale and boosting public shareholding.
The President of India recently sold a 6.5% stake in Life Insurance Corporation of India (LIC) through a stock exchange mechanism. This massive transaction, advised by Trilegal, brought in ₹31,552 crore, or about US$3.3 billion.
This deal wasn’t just big; it became India’s largest-ever offer for sale (OFS), which is essentially when existing shares are sold. It also made a huge dent in the Government of India’s budget goals.
Key Numbers from the LIC Stake Sale
- Stake Sold: 6.5%
- Amount Raised: ₹31,552 crore (approx. US$3.3 billion)
- Public Shareholding Before: 3.5%
- Public Shareholding After: 10.0%
- Budget Target Met: Approximately two-thirds of Fiscal 2027 miscellaneous receipts
The sale significantly increased LIC’s public shareholding from 3.5% to 10.0%. This move helped the government hit its minimum public shareholding target way ahead of schedule.
Investors were clearly interested. The offer saw strong demand and was oversubscribed, showing confidence in the insurance giant.
Trilegal’s Role in the Landmark Deal
Legal firm Trilegal played a dual role in this significant transaction. They advised the President of India, acting through the Ministry of Finance, on the stake sale.
They also represented the broker syndicate involved in making the deal happen. This team included several major financial players.
- Goldman Sachs
- BNP Paribas
- Motilal Oswal
- IIFL Capital
The Trilegal team, led by Partners Richa Choudhary and Maitreya Rajurkar, along with Senior Associate Sanya Chaudhari and Associate Naman Shah, ensured the smooth execution of this landmark financial event.